The hospital will join Louisiana Children’s Medical Center as part of a “public-private partnership."

Hospital leaders say this will help avoid layoffs and service reductions.

The seven LSU hospitals were facing an uncertain future, with a major cut of about $86 million.

LSU System Executive Vice President for Health Care and Medical Education Redesign Dr. Frank Opelka says the partnership is a great way to maintain and even enhance services and education.

Under the partnership, Louisiana Children’s Medical Center will lease Interim LSU Hospital and University Medical Center which is currently under construction.

“Most significantly, the partner hospitals are part of emerging partnerships around the state that together are making milestone payments totaling more than $12 million in the LSU hospital systems, allowing LSU Hospital system to avoid planned staff layoffs at the hospitals and maintain current services as the partnerships progress through completion,” said Bruce Greenstein, Louisiana Department of Health and Hospitals secretary.

Monday, officials also announced a public-private partnership for Leonard Chabert Medical Center in Houma -- and also a deal for University Medical Center in Lafayette.

The arrangement needs approval from the LSU Board of Supervisors and lawmakers.